Data Centers in Canelones
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Canelones – South America’s Resilient Renewable Hub
Strategic Stability for Southern Cone Infrastructure
Canelones serves as the primary gateway for organizations that prioritize grid stability and environmental sustainability in South America. This market acts as a secure, high-uptime alternative to larger, more volatile regional hubs, offering a predictable business environment for mission-critical workloads. By deploying here, enterprises gain reliable, low-latency access to the concentrated economic centers of Uruguay and nearby Argentina.
Canelones: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reliable regional paths with strong subsea cable ties. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest major hub is Buenos Aires; private transport is standard. |
| Power Cost | $0.12/kWh – as of September 2025 | Renewable mix provides long-term pricing stability for operators. |
| Disaster Risk | Low (2.7/10) – as of September 2025 | Region is geologically stable with minimal seismic activity. |
| Tax Incentives | Yes | Foreign investors access credit on same terms as nationals. |
| Sales Tax | 22% VAT – as of September 2025 | Standard national rate for services and hardware. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality Carrier count: over 5 – as of September 2025. While the local market features a strong presence from the national incumbent, the ecosystem is diversifying to support international transit and regional backhaul. Carrier-neutral facilities in the area allow for flexible interconnection and diverse routing to neighboring markets.
Direct Cloud On-Ramps Over 0 – as of September 2025, enabling access to 0 cloud regions. There are currently no direct public cloud on-ramps physically located in Canelones. Most enterprises utilize private network interconnects or high-speed transport to reach cloud nodes in Buenos Aires or São Paulo.
Internet Exchange Points (IXPs) The primary exchange is IX.uy, which centralizes local traffic to maintain low latency for domestic users. This exchange is essential for efficient peering between local internet service providers and content delivery networks.
Bare Metal Reliable bare metal services are available through regional providers such as Latitude.sh, allowing for rapid deployment of high-performance compute without the overhead of hardware management.
Power Analysis
Average Cost Of Power The industrial electricity rate is approximately $0.12/kWh – as of September 2025. This pricing is competitive for the region and benefits from a grid that is nearly 98% renewable, primarily utilizing hydro and wind sources. This clean energy mix allows operators to meet sustainability targets while avoiding the price volatility associated with fossil fuels.
Power Grid Reliability The local grid is well-engineered and benefits from Uruguay’s significant investment in renewable infrastructure. Data center corridors are supported by redundant substations, providing the high levels of uptime required for mission-critical digital operations.
Market Access, Business & Tax Climate
Proximity To Key Business Districts Canelones is situated immediately adjacent to Montevideo, the capital and financial heart of Uruguay. This proximity allows for rapid physical access to corporate headquarters and government agencies while maintaining enough distance to serve as a disaster recovery site for capital-based operations.
Regional Market Reach The location is a prime logistics hub for the Southern Cone. From Canelones, providers can serve a combined population of millions across Uruguay and the Buenos Aires metropolitan area with sub-20ms latency.
Tax Advantage For Data Centers Uruguay provides a welcoming environment for digital infrastructure through investment credit programs. These programs ensure that international firms can scale their infrastructure investments with the same financial efficiency as local companies.
Natural Disaster Risk
Canelones maintains a Low (2.7/10) risk profile as of September 2025. The area is one of the safest geographic locations in South America for critical infrastructure, with almost zero risk of tsunamis or major earthquakes.
- Epidemic: 6.2 – as of September 2025
- River Flood: 3.9 – as of September 2025
- Coastal Flood: 3.8 – as of September 2025
- Drought: 3.4 – as of September 2025
Other natural hazards, such as tropical cyclones and seismic activity, are minor or not present in this region. The primary operational considerations involve managing localized flooding and maintaining water reserves during drought periods.
